TFSA Investors: 5 Ultra-Cheap Stocks to Buy Right Now

5 dirt cheap stocks that TFSA investors need to be considering for their accounts including Maxar Technologies (TSX:MAXR)(NYSE:MAXR) up more than 92% since April 1st.

It certainly seems like there’s been a lot of stocks on sale as of late, following last week’s announcement by the U.S. Federal Reserve to cut its policy interest rate for the first time since 2008, a move that’s so far resulted in a brief, but outsized, spell of volatility to upend markets.

But while some stocks may be cheap, these five stocks could only be considered as being ultra-cheap, or the very cheapest of those which have presently found themselves in the market’s bargain bin…

Shares in space and satellite communications technology company Maxar Technologies (TSX:MAXR)(NYSE:MAXR) lost more than 93% of their value between the start of 2018 and the end of the first quarter.

Yet in a development that can only be viewed with a great deal of optimism for those investors interested in purchasing these types of deeply oversold conditions, MAXR stock has gone on to nearly double in value since then, gaining more than 92% since April 1.

There are rumours swirling that perhaps the company may be looking to sell its legacy Canadian business in order to pay down debt and focus more efforts on its higher margin imagery business.

If something like that were to happen, it could prove to be a major catalyst for the MAXR shares, which presently are carrying a high interest among short sellers.

Eldorado Gold Corp (TSX:ELD)(NYSE:EGO) is another company whose shares have performed magnificently well so far in 2019, gaining more than 174% in value year-to-date.

Yet shares in this gold mining stock are still inexplicably cheap on paper, trading at just 0.38x their reported book value.

If gold prices continue to gain momentum among contrarian investors this is a stock that could continue to show impressive gains for its shareholders.

Methanex Corporation (TSX:MX)(NASDAQ:MEOH) wouldn’t be seen as being quite as “deep value” as the aforementioned two companies, but we are dealing with a TSX dividend aristocrat that raised its dividend by 9.1% to shareholders of record in June and which is trading at not only its 52-week lows, but a trailing 7.44 times price-to-earnings ratio to boot.

MX would be a suitable candidate for those investors who would perhaps not be quite so comfortable with the wild swings in volatility (either good or bad) exhibited by the aforementioned two companies.

Because of Canada’s deep exposure to oil and gas prices, it seems like there is almost always an energy company or two trading on the TSX Index at unbelievably cheap prices.

Right now, Crescent Point Energy Corp (TSX:CPG)(NYSE:CPG) and Cenovus Energy Inc (TSX:CVE)(NYSE:CVE) would be two of those companies.

While neither are paying much in the way of a dividend (CVE yields 1.78% while CPG is yielding 0.99%) both trade well below their reported book values thus suggesting that if management is able to get things turned around, there could be significant potential for investors to realize big-time capital gains on their investments.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Jason Phillips has no position in any of the stocks mentioned. Maxar Technologies is a recommendation of Stock Advisor Canada.

More on Dividend Stocks

Canadian Dollars bills
Dividend Stocks

Invest $15,000 in This Dividend Stock, Create $5,710.08 in Passive Income

This dividend stock is the perfect option if you're an investor looking for growth, as well as passive income through…

Read more »

A Canada Pension Plan Statement of Contributions with a 100 dollar banknote and dollar coins.
Dividend Stocks

3 Compelling Reasons to Delay Taking CPP Benefits Until Age 70

You don't need to take CPP early if you are receiving large dividend payments from Fortis Inc (TSX:FTS) stock.

Read more »

A worker overlooks an oil refinery plant.
Dividend Stocks

Better Dividend Stock: TC Energy vs. Enbridge

TC Energy and Enbridge have enjoyed big rallies in 2024. Is one stock still cheap?

Read more »

Concept of multiple streams of income
Dividend Stocks

Got $10,000? Buy This Dividend Stock for $4,992.40 in Total Passive Income

Want almost $5,000 in annual passive income? Then you need a company bound for even more growth, with a dividend…

Read more »

Investor reading the newspaper
Dividend Stocks

Emerging Investment Trends to Watch for in 2025

Canadians must watch out for and be guided by emerging investment trends to ensure financial success in 2025.

Read more »

RRSP Canadian Registered Retirement Savings Plan concept
Dividend Stocks

Watch Out! This is the Maximum Canadians Can Contribute to Their RRSP

We often discuss the maximum TFSA amount, but did you know there's a max for the RRSP as well? Here's…

Read more »

Electricity transmission towers with orange glowing wires against night sky
Dividend Stocks

Outlook for Fortis Stock in 2025

Fortis stock is up 10% in 2024. Are more gains on the way?

Read more »

Canadian energy stocks are rising with oil prices
Dividend Stocks

3 Low-Volatility Stocks for Cautious Investors

As uncertainty grips the market, here are three low-volatility stocks you can buy and hold with confidence.

Read more »